For nearly fifty years, an Indian student arriving in the United States on an F-1 visa was admitted for something printed on their I-94 as three letters: D/S. Duration of Status. It meant the student could stay for as long as they remained enrolled and maintained their academic standing. No calendar expiry date. No countdown clock. Just a status that lasted as long as the conditions behind it held.
That changes on September 15, 2026. DHS published a final rule on July 17, 2026 ending the Duration of Status framework for F-1 students, J-1 exchange visitors, and I visa holders. What replaces it is a fixed-term admission model: a specific date printed on the I-94, a maximum four-year cap on most stays, and a formal extension process through USCIS for anything beyond that. For the 331,000-plus Indian students currently on F-1 status in the US, this is not a minor procedural update. It is a system-wide reset of how US student status works.
Sources: DHS final rule analysis, SHRM; Visa for the United States explainer; Immigration World analysis.
What Duration of Status Was, and Why It Is Ending
Under the D/S system, an F-1 student’s legal status in the US was tied to their academic programme rather than a calendar date. If they stayed enrolled, maintained full-time status, and complied with SEVIS requirements, their status remained valid. The I-94 said D/S and universities managed extensions through their Designated School Officials updating SEVIS records. USCIS was not involved unless there was a separate compliance issue.
The DHS rationale for ending this, as summarised in immigration law analysis, is enforcement consistency. The D/S framework made it difficult to calculate when unlawful presence began if a student fell out of status, because there was no hard I-94 date to anchor the calculation to. A fixed date creates a clear compliance trigger and aligns F-1 treatment more closely with how other visa categories work.
The practical consequence for students is that a system that felt administratively invisible now becomes visible. There is a date. That date matters. And managing it becomes the student’s responsibility in a way it was not before.
What Exactly Changes on September 15, 2026
| Area | Old Rule (Duration of Status) | New Rule from Sept 15, 2026 |
| I-94 Entry | Printed as ‘D/S’, no fixed expiry date | Printed as a specific ‘admit until’ date tied to Form I-20 programme end |
| Maximum Stay | No formal maximum; valid as long as enrolment and SEVIS compliance continued | Up to 4 years for most F-1 students, covering study plus any OPT/STEM OPT |
| Extensions | University DSO updated SEVIS; no direct USCIS involvement for most students | Form I-539 (Extension of Stay) must be filed with USCIS before the I-94 date expires |
| Post-Completion Grace | 60 days after programme end to depart, file OPT, transfer, or change status | 30 days, cut in half, aligned with J-1 and M-1 rules |
| Unlawful Presence Trigger | Nuanced calculation; violations did not always start the clock immediately | Starts the day the I-94 date passes with no extension or new status in place |
Sources: DHS rule and CBP I-94 implementation notes; Collegedunia rule analysis; MyTravelReady 2026 US student visa changes.
The 4-Year Cap: Who Gets Hit Hardest
For most taught master’s students, a two-year programme sits well inside the four-year ceiling with room for OPT. The cap is largely invisible for them. The students for whom this matters most are:
• PhD students: A five or six-year doctoral programme now requires a formal I-539 Extension of Stay filing with USCIS before the four-year I-94 date expires. This is not a SEVIS update handled by a DSO. It is a USCIS application with filing fees, processing time, biometrics, and a pending status window the student needs to plan around.
• Dual-degree students: Combined programmes that run longer than four years face the same extension requirement at the four-year mark.
• Students who change programmes: A student who switches from a two-year master’s to a doctoral programme mid-way now has less runway within the original I-94 window than they might assume.
• STEM OPT students: Students relying on the full STEM OPT extension of up to three years should verify how their specific timeline interacts with the new I-94 date. The rule notes that OPT and STEM OPT end dates can be reflected on the I-94, but anything extending beyond the four-year cap requires separate filing.
Per the Collegedunia analysis, the rule applies to entries on or after the effective date. Students already in the US on D/S at September 15, 2026 generally retain their current status until their I-20 end date or September 15, 2030, whichever comes first.
The 30-Day Crunch: Grace Period Halved
The post-completion grace period, the window after a programme ends during which a student can remain in the US to prepare departure, apply for OPT, or make a status change, is being cut from 60 days to 30 days.
For Indian graduates in competitive job markets like technology, finance, and data science, this is a meaningful compression of the search window. A student who graduates in May now has until the end of June, not mid-August, to file for OPT, accept an offer, change to a different status, or make arrangements to leave. The sequence has to move faster, and any delay in OPT filing or employer processing has less buffer to absorb it.
| Important: Missing the 30-day grace period triggers unlawful presence from that point onward. More than 180 days of unlawful presence results in a 3-year bar from the US. More than 1 year results in a 10-year bar. Under the old D/S system, calculating when unlawful presence began was complex. Under the new rule, it starts the day after the I-94 date with nothing in place. |
The Real Cost: Budgeting for New Regulatory Fees
These are not optional expenses for students who need an extension or who encounter any timing complexity around their status. They are required government fees with no waiver mechanism for most applicants:
| Item | Estimated Cost (USD) | Who It Affects |
| Form I-539 Extension of Stay filing fee | USD 300 to 500 | Any F-1 student whose programme exceeds 4 years |
| Premium Processing (optional, under 5 months) | USD 1,900 | Students needing faster USCIS decision on extension |
| Biometrics appointment fee | USD 80 to 85 | Required for most I-539 applicants |
| Attorney / DSO advisory fees | Variable | Strongly recommended for PhD and extended programme students |
For context on the Indian side of this equation: the government has reduced TCS on self-funded education remittances above Rs. 10 lakh to 2 percent for 2026, down from 5 percent. Families routing tuition through a qualifying education loan continue to benefit from 0 percent TCS. For more on structuring remittances efficiently, see our LRS tuition transfer guide.
Transition Rules: What Current Students Need to Do
Students already studying in the US on F-1 status as of September 14, 2026 are not immediately required to do anything. Their current D/S status generally remains valid until their I-20 programme end date or September 15, 2030, whichever comes first. The new rules apply to anyone entering or re-entering the US on or after the effective date.
The travel trap: if a student currently on D/S leaves the US for any reason, including a holiday visit to India, and re-enters on or after September 15, 2026, they will receive a fixed-term I-94 on that entry. Their D/S grandfathering ends at the border. This is one of the most practically important points for Indian students who travel home between semesters.
• If you are currently in the US on D/S: Consult your DSO immediately. Many universities are recommending students return from any planned India visit before September 15, 2026 to preserve their current D/S status as long as possible.
• If you are in India and planning to return: Any entry on or after September 15 will give you a fixed-term I-94. Confirm your I-20 dates and programme timeline with your DSO before travel.
• If you are applying for a new F-1 visa: Your I-94 will be fixed-term from the start. Build the extension timeline into your financial and academic planning from day one.
How Finnest Helps Indian Students Recalculate the US ROI
The US was already the highest-cost study abroad destination for Indian students in absolute terms. The new compliance layer adds real fees and timeline pressure that were not part of the financial picture a year ago. For a PhD student planning a five or six-year programme, the I-539 filing fees, potential attorney costs, and premium processing if needed represent an additional Rs. 2 to 4 lakhs in unbudgeted expense at the four-year mark.
At Finnest, we help families recalculate the full Return on Learning for US-bound students in light of these changes. That means adjusting the cost model to include extension fees where a programme runs longer than four years, reviewing whether loan-funded remittances (at 0 percent TCS) make sense given the timing of multiple large transfers across a longer study period, and assessing whether the US programme’s salary outcome still justifies the revised total cost at 2026 conditions.
For Indian STEM students specifically, OPT and the STEM extension remain the primary post-graduation work pathway. The new timeline pressures make early, accurate filing more critical than before. A student who misses the 30-day grace period window because an OPT application was delayed has a materially different financial outcome than one who filed on time.
For the full picture of what studying in the US costs and returns at current conditions, see our study abroad cost vs ROI guide or our guide on which AI-era degrees still make sense. See how we work on our services page.
Talk to a Finnest counsellor: https://finnest.in/contact-us/
Frequently Asked Questions
If I am in a 5-year PhD programme, when do I need to file for an extension?
File Form I-539 with USCIS before your four-year I-94 date expires. Do not wait until you are close to the deadline. USCIS processing for I-539 is not instant, and a pending application during processing generally allows you to remain in valid status, but any employment-related authorisation, including CPT, stops the moment the I-94 date passes without a timely-filed application in place. Start the process with your DSO at least six months before the four-year mark.
Does the new rule affect my OPT or STEM OPT extension?
Students who file for post-completion OPT on or before March 18, 2027 may not require a concurrent I-539 extension in most cases, as the OPT end date can be reflected on the I-94 directly. However, for students whose STEM OPT extension pushes the total stay beyond four years, additional filing is likely to be required. The specific interaction between OPT timelines and the new I-94 cap is an area where DSO guidance and, for complex cases, an immigration attorney is worth the cost.
What happens if USCIS does not approve my extension before my I-94 expires?
If you filed the I-539 before the I-94 expiry date, you generally remain in a period of authorised stay while the application is pending, meaning you can continue to study. However, any CPT or other employment authorisation stops at the I-94 date if it has not been renewed, even with a pending application. You cannot work on CPT during a pending period. This is a real financial and academic constraint for students who rely on CPT income or internships during the extension processing period.
Should I return to the US before September 15, 2026, if I am currently in India?
If you are currently on F-1 with D/S and want to preserve that status as long as possible, yes. Any re-entry on or after September 15, 2026 will result in a fixed-term I-94, ending your D/S grandfathering at the border. That said, every student’s situation is different. Check your I-20 dates and programme timeline, talk to your DSO, and make the travel decision with full information about when the four-year cap would actually bite for your specific programme and graduation timeline before booking a flight.